Baessetti v. Shenango Furnace Co.

142 N.W. 322, 122 Minn. 335, 1913 Minn. LEXIS 588
CourtSupreme Court of Minnesota
DecidedJuly 3, 1913
DocketNos. 18,128—(211)
StatusPublished
Cited by7 cases

This text of 142 N.W. 322 (Baessetti v. Shenango Furnace Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baessetti v. Shenango Furnace Co., 142 N.W. 322, 122 Minn. 335, 1913 Minn. LEXIS 588 (Mich. 1913).

Opinion

Hallam, J.

Action to recover damages for the breach of an executory contract for the purchase by defendant from plaintiff of certain lagging and mining timber. The trial resulted in a verdict for plaintiff in the sum of $673. Defendant moved for judgment in its favor notwithstanding the verdict, or, if that was denied, for judgment in its favor except as to a certain sum, or if that was denied, for a new trial. Each of these motions was denied, and defendant appealed from the order.

The contract, for the alleged breach of which plaintiff sought damages in this action, consisted on defendant’s part of a written order or request from defendant dated November 20, 1911, that plaintiff furnish defendant with 1,000 cords of 6 foot “lagging” delivered before March 15, 1912, at Shenango mine or on board cars at a siding for shipment to other mines of defendant, at the price of $3.90 per cord, and also an agreement to take from plaintiff not over 20,000 lineal feet of “mining timber” at 3 cents per lineal foot, logs to be 7 inches or more at small end, and 12 feet long, and to be delivered at Shenango mine. •

Defendant operates an underground minp called the Shenango mine, and also two other mines. Plaintiff owned stumpage rights on three 40-acre tracts a mile or' two distant from the Shenango mine. “Lagging” is short, rough timber used to put over the drifts in underground mines to support the overburden and protect the men working below. “Mining timber” is timber used as uprights to support the lagging.

Plaintiff had delivered 7 6 cords of lagging to the Shenango mine and had 200 cords more cut and piled on his land, when defendant, on December 22, 1912, canceled the contract, claiming that the lagging delivered was of a very inferior quality. One of the issues on the trial, and probably the main issue, was whether defendant was or was not justified in canceling the contract. It is conceded here that this was a question for the jury, and that the evidence was such that the verdict is final on this issue.

The questions before us on this appeal I’elate to the measure of [338]*338plaintiff’s damages. The trial court instructed the jury that, if plaintiff was entitled to recover at all, he would be entitled to the contract price for the lagging actually delivered at the mine. This was clearly correct, and no claim is made to the contrary. As to the 200 cords which had not been delivered, but which had been cut in the woods, the court ruled that the measure of damages was the difference between the contract price and the market value, provided the jury found there was a market value for such lagging, but that, if they found there was no market value, the measure of damages would be the difference between the contract price and the cost to plaintiff of the lagging delivered according to the contract. As to the standing timber on plaintiff’s land which was necessary in order to complete his contract with defendant, and which had not been cut at the time the contract was canceled, the trial court instructed that the measure of damages was the difference between the contract price and what it would have cost plaintiff to cut, haul and deliver the same in accordance with the contract, including the cost of the stump-age.

It appeared conclusively from the evidence that the land on which plaintiff had the stumpage rights contained just about enough timber to take care of the contract, and that plaintiff had no other land from which he could cut and sell lagging or mining timber. After defendant canceled the contract, plaintiff, whose stumpage rights expired that winter, continued the cutting of his timber, and cut substantially all timber on the land into lagging and mining timber, and thereafter and during that winter sold it all except 300 cords to other mines in the vicinity. lie sold 350 cords of the lagging to the Clair Iron Co., at $4.00 per cord, 250 cords to the Oliver Mining Co., at $4.50 per cord, and 25 cords to a baker at $4.00 per cord. The 300 cords not sold during the winter of 1911-1912 was piled by plaintiff, and sold in the spring and early summer to the Oliver Company at $4.50 per cord. He sold the 20,000 feet of mining timber to the iron company at 3 cents per lineal foot. Thus, counting the 15 cords delivered to defendant, plaintiff disposed of all of the lagging and mining timber called for by the contract, and all that he had on the land. He testified that the cost of hauling was 50 [339]*339cents more per cord than it would have been if the timber had been delivered to defendant under the contract.

It is apparent from the above facts that, owing to his successful efforts to dispose of to others the lagging and mining timber defendant contracted to take, plaintiff’s actual loss was much less than 'the amount of the verdict rendered. The trial court ruled that the damages Were fixed at the time the contract was broken, and that defendant was not entitled to any reduction in the amount because plaintiff afterwards succeeded in reducing his loss by sales to others.

The questions to be here decided may be thus stated: (1) Did the trial court give the correct rule as to the measure of damages for the 200 cords of lagging that had been cut but not delivered at the-time of the breach? (2) Did it give the correct rule as to the measure of damages for the lagging and mining timber that had not been cut at the time of the breach, considering the fact that, after the-breach, plaintiff cut the same? (3) What effect on the amount of damages recoverable for the breach has the subsequent sale to others of the lagging and mining timber?

1. In regard to the 200 cords of lagging that had been cut but not delivered to defendant at the time of the breach, if it had a market value, the measure of damages would be the difference between the contract price and such value. The trial court so stated in its charge, but left it to the jury to decide whether such lagging-had a market value. We think the evidence was conclusive that there was a market value for 6 foot lagging at the time this contract was broken, and that it was therefore error to permit the jury to apply the measure of damages that would be proper in case such lagging had no market value. That the price varied at the different mines or that one of the chief buyers of lagging was at the time so stocked that he was not in the market, are not considerations that militate against this conclusion. It was for the jury to say what the market value was, and to estimate plaintiff’s damages- accordingly.

2. Should this .same rule apply to the lagging and mining timber that was contained in the standing trees at the time of the -breach, but which was then cut by plaintiff and made ready for sale ? Where a contract for the manufacture and sale of an article is broken by the [340]*340purchaser before the article is manufactured, and the seller goes on and completes the article, what is his measure of damages ? The object of all rules for estimating damages for breach of contract is to arrive at the actual loss which has been sustained. A rule that gives the seller, for the breach of an executory contract of sale by the buyer, more damages than he has actually sustained, is prima facie a wrong rule, as is any rule that mulcts the vendee in damages greater than the actual loss he has caused. The object is always to apply a rule that will, as nearly as possible, put the vendor in the same position as if the contract had not been broken.

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Cite This Page — Counsel Stack

Bluebook (online)
142 N.W. 322, 122 Minn. 335, 1913 Minn. LEXIS 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baessetti-v-shenango-furnace-co-minn-1913.